Florida Progress Attacks Crawford Letter

Florida Progress Attacks Crawford Letter

Article excerpt

Mid-Continent Life's parent company charges Insurance
Commissioner
John Crawford misled its policyholders in a mass mailing earlier
this
month.

Filing a motion in Oklahoma County District Court, Florida
Progress alleges Crawford's letter to Mid-Continent policyholders
incorrectly stated that Florida Progress could not raise premiums on
155,000 so-called extra-life policies.

The motion also states that Crawford's letter directly
contravened
a court order permitting policyholders to replace policies.
But Crawford argues Florida Progress has ulterior motives in
filing the motion.
"This motion has nothing to do with resolving this matter with
policyholders and everything to do with fattening Florida Progress'
bottom line," Crawford said in a prepared statement.
Crawford took control of the 99-year-old life insurance company in
April. Policyholders had complained to the department that Mid-
Continent announced premium hikes, although marketing materials said
rates would not change.
Mid-Continent currently is operating at a $348 million deficit.
Crawford sued St. Petersburg-based Florida Progress in December,
charging breach of fiduciary duty and state law violations against
directors and former Mid-Continent executives.
Crawford said this latest motion is a stall tactic.
"After months of malicious interference with the duties of this
office, it comes as no surprise that Florida Progress continues to
invent new half-truths to delay the case," Crawford said.
In a hearing earlier this month, Judge James Blevins warned
parties to proceed quickly in the case, in the interest of
policyholders.
Florida Progress, a $5. …